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● 07.31.10

●● Microsoft’s #1 Cash Cow Doesn’t Sell Well Anymore, Steve Ballmer Pressured to Leave

Posted in Microsoft, Office Suites, Steve Ballmer, Windows at 1:18 am by Dr. Roy Schestowitz

Summary: Microsoft’s Office sales are said to be “disappointing” and the Wall Street Journal foresees more trouble ahead

Microsoft Office 2010 has been receiving poor reviews, but as noted before, Microsoft hyped it up far too much (marketing budget alone almost reached $100,000,000). See for example posts like:

=> has been receiving poor reviews

Office 2010 Coverage Largely Fake, Orchestrated by MicrosoftMicrosoft Office 2010 is a Security VulnerabilityMicrosoft Reporter Believes Vista 7 and Office 2010 Keep Getting Worse with ‘Ribbons’

Microsoft Office 2010 sales are disappointing, says a report which IDG mentioned:

=> ↺ Microsoft Office 2010 sales are disappointing | ↺ mentioned

“This fact highlights the challenges for Microsoft going forward for Office,” Baker wrote. “A strong product launched into a saturated market faces considerable headwinds. Even so, sales of Office 2010 in general have to be characterized as a bit disappointing during the first two weeks.”

This isn’t particularly surprising and as Canonical’s Matt Asay points out yesterday:

=> ↺ points out yesterday

n Wednesday’s Wall Street Journal, columnist Holman Jenkins, Jr asks if “Steve Ballmer is a failed CEO?” then forecasts Microsoft’s feeble future even as it banks record profits. Microsoft is a company stuck in the glory years of the 1980s and 1990s – truly glorious years for a company that built not one but two massive cash cows: Windows and Office.

The profit margins of Windows and Office gradually erode as competition increases. Microsoft’s Windows profits decline over the years, leading to more and more layoffs and an increase in Microsoft’s debt. Don’t believe the accounting hype like Asay believes it. Ballmer inherited a company with huge cash reserves which were depleted. █

=> decline over the years | ↺ more and more layoffs | ↺ an increase in Microsoft’s debt | accounting hype

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